How To Be a Smart Home Shopper

B. You should know the terms of your loan. For example, do you have a fixed, or variable interest rate? What will your interest rate be? Will you be paying mortgage insurance? Do you have a prepayment penalty? Do you have a balloon payment? Fees associated with home loans can add up quickly. Avoid bad surprises by informing yourself, ahead of time. Give yourself the advantage. Shop around for the best terms.

2. Find out what closing costs are associated with your home purchase.﻿

Your mortgage company will most likely expect property tax, hazard insurance, mortgage insurance, trash, and sewer fees to be pre-paid. Those costs are part of your closing costs. These costs are in addition to your down payment.1. Transfer tax.2. Title insurance3. Escrow fee4. Home Owner Association transfer fees5. Mortgage processing fees.6. Wiring fees

7. Recording fees8. Broker fees﻿

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These costs can be negotiated, between the seller, and buyer. But, they should be negotiated at time of writing contract. The more knowledgeable you are, the stronger negotiator you will be.

3. It is a beneficial to have a buyers agent.

The buyer has the right to ask for his own agent. A buyer's agent owes their primary obligation to the buyer. Whereas, the listing agent has a primary duty to the seller. Having your own agent helps to prevent conflicts of interest. Every buyer should have their own agent. Your agent should give you a professional opinion of the listed price based on camparable sales in the neighborhood. ﻿

4. Review comparable home sales, before writing an offer.

The buyers agent should prepare a BPO, for the buyer. A BPO is an acronym for "Broker's Professional Opinion". This report is also commonly called a "Comparables Report", or a CMA.

This report shows the price per square foot. And, it shows how the home compares to other homes, in the area. A quality BPO will help give the buyer a good idea of the range of prices in the subdivision.

5. Get a professional home inspection.

Every buyer should invest in a professional home inspection. A thorough home inspector can warn a buyer if a home is in need of major, and/or minor repairs. A good home inspector can detect issues with the foundation, leaks, water damage, roof, air conditioning, and pool problems. A home buyer should be aware of necessary repairs before finalizing a sale. ﻿